MUNICIPALITY OF ANCHORAGE ENTERPRISE AND UTILITY OVERSIGHT COMMITTEE Mark Spafford, General Manager Department of Solid Waste Services September 19, 2019 #DoSomething
Everything that we do… LANDFILL CLOSURE COUNTDOWN acak.statwindow.com/landfill 2
01. New Centr ntral al Tran ansfer sfer St Stati tion on Design ign Upda date te Ch Chris Co Coleman, , Tetr tra Tec ech AGENDA 02. Rate e Re Reque uest Heidi Hei i Th Thom omerson Mar Mark Sp Spaffor ord 03. Ener ergy gy from Waste te White ite Pa Paper er Mar Marc Rog ogof off Geos eosyntec Co Cons nsultants
Ne New Cen entr tral l Transf sfer er Station tion De Desi sign gn Update te 01. Chris Coleman, Tetra Tech
Where we are today, September 2019 FALL 2018 FALL 2019 WINTER / SUMMER SUMMER SUMMER SPRING 2020 2020 2021-22 2023 Variance Request: 10/2018 Community Master Plan Conditional Use Permit Groundbreaking: Two seasons of Meeting #1 and Finalized Final season of & Platting Requested: construction construction Urban Design construction and begins Commission Community Meeting #2 project completion 11/2018 Hearing Assembly Approved and Planning & Zoning Master Plan Commission Hearing Concepts Building Permitting Process Initiated
Ra Rate te Req eques est t 02. Heidi Thomerson & & Mark Sp Spafford
Disposal Rate History Rates to Consumer Price Index (“CPI”) Perspective Solid Waste Disposal Rate Per Ton 100 95 90 85 80 75 70 65 60 55 50 $ per ton - CTS Avg rates adjusted for CPI 45 40
Revenues must cover operating expenses, and SWS the utilities must adhere to the following basic financial Financial policies: • Operating Reserves Policies • Capital Reserves • System Reinvestment Funding (i.e. – Depreciation) • Dividends
Rate Analysis Update to our Plan We have a plan now. SWS Disposal Collections
Disposal $35,000,000 Disposal Revenue Requirement $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- Projected 2018 Actual 2018 2019 2020 2021 2022 Annual Expenditures-with CTS Revenue Under Existing Rates Revenue with Proposed Increase Rate Revenue Requirement Projected 2018 Actual 2018 2019 2020 2021 2022 Increase Revenue Under Existing Rates $ 23,446,536 $ 23,314,640 $ 23,314,640 $ 23,314,640 $ 23,314,640 $ 23,314,640 Revenue with Proposed Increase $ 23,446,536 $ 23,314,640 $ 25,572,809 $ 28,619,596 $ 30,206,332 $ 31,892,239 for Annual Expenditures-with CTS $ 24,936,165 $ 23,985,136 $ 25,238,955 $ 26,313,493 $ 27,900,235 $ 28,222,012 Net Revenue with rate increase $ (1,489,629) $ (670,496) $ 333,854 $ 2,306,104 $ 2,306,097 $ 3,670,228 Disposal Proposed Annual Rate Increase 0.00% 0.00% 6.25% 6.25% 6.25% 6.25%
Disposal $35,000,000 Disposal Revenue Requirement $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- Projected 2018 Actual 2018 2019 2020 2021 2022 Annual Expenditures-with CTS Revenue Under Existing Rates Revenue with Proposed Increase Proposed Annual Rate Increase 0.00% 0.00% 6.25% 6.25% 6.25% 6.25%
Collections $16,000,000 Collections Revenue Requirement $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- Projected 2018 Actual 2018 2019 2020 2021 2022 Annual Expenditures Revenue Under Existing Rates Revenue with Proposed Increase Rate Cash Flow Summary FYE Projected 2018 Actual 2018 2019 2020 2021 2022 Increase Revenue Under Existing Rates $ 11,445,000 $ 11,238,360 $ 11,238,360 $ 11,238,360 $ 11,238,360 $ 11,238,360 Revenue with Proposed Increase $ 11,445,000 $ 11,238,360 $ 12,006,250 $ 12,876,692 $ 13,202,327 $ 13,581,724 for Annual Expenditures $ 11,940,660 $ 11,688,918 $ 11,306,941 $ 12,398,788 $ 12,646,764 $ 12,899,699 Net Cash Flow After Increase $ (495,660) $ (450,557) $ 699,309 $ 477,904 $ 555,563 $ 682,025 Collections Proposed Annual Rate Increase 0.00% 0.00% 5.00% 5.00% 5.00% 5.00%
Collections $16,000,000 Collections Revenue Requirement $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- Projected 2018 Actual 2018 2019 2020 2021 2022 Annual Expenditures Revenue Under Existing Rates Revenue with Proposed Increase Proposed Annual Rate Increase 0.00% 0.00% 5.00% 5.00% 5.00% 5.00%
64-gal with Recycle 3CY, 2 times/wk Rate: Rate: Current - $27.62/month Current - $263.00/month vs. vs. Proposed - $29.00/month Proposed $276.00/month
Ener ergy gy fr from om Waste te Wh Whit ite e Pap Paper er 03. Marc Rogoff, Geosyntec Consultants
B OOKS
WA S T E - TO- E N E RGY WORLDWIDE
W T E P R E F E R R E D A LT E R N AT I V E I N E U R O P E 2,179+ WTE plants worldwide; 77 in U.S.
WA S T E - TO - E N E R G Y I N T H E U. S . • 77 WTE plants in 25 states • 14% • 4 facilities in PNW: • Spokane • Vancouver • Portland • Modesto
WA S T E - TO - E N E R G Y T E C H N O LO G I E S
E VA LUAT I O N C R I T E R I A STATE OF TECHNICAL TECHNICAL TECHNOLOGY PERFORMANCE RESOURCES Degree to which technology Compatibility with full Proven contractor has been proven on a spectrum of MOA waste experience with technology commercial scale system Proximity of technical Operating History Ability to produce support marketable byproducts Freedom from high Availability to provide failure modes Need for pre processing support on continuing basis Demonstrated reliability of entire system
A D VA N TA G E S O F M A S S B U R N P L A N T S • Commercially proven • Mature technology addressing high risks with design and operational procedures • High gross energy output • U.S. based vendors • Pool of experienced professionals
C LO S E R LO O K AT M A S S B U R N T E C H N O LO G Y
E N V I R O N M E N TA L B E N E F I T S O F W T E • WTE is Renewable Energy • Reduces Greenhouse Emissions • Reduces Reliance on Landfills • Reduces Truck Traffic and Related Emissions • Complements Recycling
E C O N O M I C S O F M A S S B U R N T E C H N O LO G Y R E V E N U E S E X P E N S E S • Electric Sales • Debt Service • Biosolids Tipping Fees • Operating Fees • Supplemental Waste Fees • Potable and Non Potable Water • Recovered Metals • Propane • Lime Pebble • Lime Dolomite • Urea • Carbon
PRO FORMA MODEL
PRO FORMA RATE MODEL
CONCLUSIONS 01. 03. 05. Mass incineration is the Various economic WTE can incinerate most well established and scenarios suggest MOA biosolids reliable WTE technology required tipping effectively fees range from $58.04 to $85.67 02. 04. The MOA generates WTE is a practical goal 1,000 tpd; 1,200 tpd with of the ISWMP neighboring Boroughs
✓ SWRAC Resolution of Support ✓ Waste Composition and Fuel Analysis ✓ Confirm Site FUTURE ✓ Confirm Energy Pricing STEPS ✓ Confirm Neighboring Boroughs Interest ✓ Develop Borough Implementation Team ✓ Procurement Options ✓ Develop Financing Plan
Thank you. #DoSomething 37
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